Despite the last two years of decelerating rent growth, the spring season proves its continued strength. After a substantial rent increase in March, which marked the best performance since last summer, multifamily rents in April have once again risen $4 to $1,377, increasing by $10 overall the last two months. Year-over-year, rents have increased by 2.4 percent, but down 20 basis points from March.

The seasonal gain was widespread across major metros, all except for Raleigh. The top growth performers were once again Orlando, which had an increase of 6.2 percent, followed by Sacramento with 5.2 percent, Las Vegas rising 5.1 percent, Tampa (4.4 percent) and Phoenix (4 percent). Warm climates, strong job growth and domestic migration add to the success of these metros, although Sacramento is showing signs of deceleration after years of double-digit growth.

The Renter-by-Necessity market maintained a growth spread of 140 basis points compared to Lifestyle, as the demand for affordable housing grows. Year-over-year, the occupancy rates on stabilized properties has dropped 100 basis points or more for 11 of the top 30 metros. At a national level, the rate has dropped by 80 basis points to 94.9 percent. The most significant changes have been in Seattle, Raleigh and Nashville, which saw a 160-basis-point reduction through last month. Year-over-year, Seattle dropped from 5.4 percent to 1.4 percent, Nashville from 2.6 percent to 0.8 percent, and Raleigh from 3.3 percent down to 0.7 percent.

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